DUBLIN, September 15, 2021 / PRNewswire / – The “Global Healthcare Contract Manufacturing Market” report was added to ResearchAndMarkets.com offer.
The global healthcare contract manufacturing market size is expected to reach $ 323.6 billion by 2028 and is expected to increase at a CAGR of 7.7% from 2021 to 2028. The changing regulatory landscape, coupled with the increase in offshoring to emerging countries, is expected to propel the market growth during the period forecast.
The growing demand for advanced products is a major factor driving the market. Original Equipment Manufacturers (OEMs) outsource medical device manufacturing activities to third parties, primarily to developing countries for economic benefits.
Furthermore, these regions are seeing an increase in the cases of chronic diseases, such as heart disorders, thereby positively affecting the growth of the market. Changes in reimbursement programs are expected to increase the adoption of cost containment measures by OEMs. For example, to prevent reimbursement issues from affecting funding goals, device makers develop a well-planned reimbursement strategy alongside their regulatory and clinical strategies in the early stages of product development.
In addition, the growing geriatric population across the world and the consequent increase in age-related diseases has spurred the advancement of pharmaceutical and medical device development, leading to the growth of the healthcare manufacturing industry. . With increasing demand, the market is now witnessing an influx of manufacturing service providers.
Asia Pacific was the dominant regional market for medical device outsourcing in 2020 due to lower costs and easy availability of skilled human resources. For example, according to the IBEF, mergers and acquisitions in the healthcare sector in India increased by 155% ($ 1.09 billion) in 2019.
An increase in the number of medical device companies vying to enter regional markets, such as India and China, is also expected to contribute to the growth of this market. For example, the Chinese government’s Marketing Authorization Holder (MAH) program enables international healthcare players to produce their products in the local Chinese market equipped with state-of-the-art centers. The expansion of production capacity by players such as WuxiBiologics is a remarkable example of this deliberate plan.
Due to the emergence of infections, such as COVD-19, many organizations are trying to ramp up production to meet growing demand. Thus, these companies are appointing health marketing directors to speed up their production processes and reduce their overall costs in order to meet the growing demand for medical products.
The global effort to develop a vaccine and therapeutic agent for COVID-19 has created the greatest opportunity for many large and small CMOs, as pharmaceutical companies manufacture vaccine doses on a large scale. We can therefore say that the pandemic has had a positive impact on this industry.
This paradigm shift from in-house manufacturing to contract manufacturing in the pharmaceutical and medical device industry has resulted in an increased focus of companies on contract manufacturing service providers. These services have effectively responded to concerns about the manufacture of pharmaceutical and medical devices and have significantly accelerated the time to market of products.
Highlights of the Healthcare Contract Manufacturing Market Report
- By type, the pharmaceutical segment dominated the market with a share of 75.2% in 2020 due to a low manufacturing budget and highly sophisticated contract manufacturing service offerings.
- The medical device types segment is expected to be the fastest growing segment with a CAGR of 9.7% during the forecast period due to increasing pressure on OEMs to reduce costs and improve lead time. placing a product on the market.
- Cardiology was the dominant therapeutic area segment in the medical device contract manufacturing market in 2020 due to the increasing demand for cardiovascular devices due to the increasing prevalence of associated heart disease.
- Asia Pacific dominated the market in 2020 and is expected to experience the fastest growth during the forecast period owing to the presence of a large number of service providers, falling costs and increasing demand for medical devices in the region
Market driver analysis
- Implementation of international standards by contract manufacturers
- Drug shortage drives demand for pharmaceutical development
- Commercial success of biologicals for clinical use
Analysis of market restrictions
- Regulatory and legal compliance
- Threat of loss of information
Contract Manufacturing Market Analysis Tools
- Porter’s Five Forces Analysis
- PESTEL analysis
- Analysis of major transactions and strategic alliances
- Nordson Medical
- Whole holding company
- Jabil Inc.
- FLEX LTD.
- Celestica Inc.
- Sanmina Company
- Plexus Corp.
- Phillips medisize
- Western Pharmaceutical Services, Inc.
- Catalent, Inc.
For more information on this report, visit https://www.researchandmarkets.com/r/4rsk68
Research and markets
Laura Wood, senior
For EST office hours, call + 1-917-300-0470
For USA / CAN call toll free + 1-800-526-8630
For GMT office hours, call + 353-1-416-8900
US Fax: 646-607-1904
Fax (outside the United States): + 353-1-481-1716
SOURCE Research and Markets